Just how, if at all, are banks hedged or providioned for an increase in volatility and/or rates from these levels, if a mere 4% blimp in equity markets caused Jefferies to nearly write-down it entire bond-trading revenue for the quarter?

We now know: not at all.

We also said: "And now that Jefferies is in the record books, just how bad with bond trading results for the rest of the big banks be? We should know in about 4 weeks."